A. fall
B. increase
C. remain the same
D. fluctuates
A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets
A. demand, supply
B. IS, LM
C. AD, AS
D. Labor demand, labor supply
A. inflation
B. a supply shock
C. crowding out
D. inflation illusion
A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity
E. A and C
F. B and D
A. minimize negotiation costs
B. minimize unemployment effects
C. guarantee that only the least productive workers will be laid off.
D. will equitable spread the layoffs among junior and senior workers
A. an implicit or social contract
B. a relative-wage contract
C. employment at will
D. an explicit contract
A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists.
A. lower unemployment rate will tend to lower the inflation rate
B. lower unemployment rate will tend to raise the inflation rate
C. raise inflation rate will tend to raise the unemployment rate
D. lower inflation rate will tend to raise the unemployment rate
A. the price level and the unemployment rate
B. the inflation rate and the unemployment rate
C. the level of aggregate output and the price level
D. the inflation rate and the level of aggregate demand